In today’s market, millennials make up a huge percentage of home buyers—37 percent, according to the National Association of REALTORS® 2021 Home Buyers and Sellers Generational Trends report.
But what is driving millennial buyers into the market?
According to a recent survey from realtor.com, 59 percent of first-time millennial home buyers cited wanting to be a homeowner as their main reason for planning to buy a home. Wanting more space (31 percent) and the desire to build equity (22 percent) also ranked high as reasons millennials are shopping for homes.
So, what features are millennials looking for in their first home purchases? Location topped the list at 38 percent—with a quiet neighborhood (33 percent) and a large backyard (32 percent) not far behind.
But the path to homeownership isn’t without its challenges. Nearly half of the millennials surveyed (47 percent) cited coming up with money for a down payment as the biggest obstacle to finding a home—while 37 percent are having trouble finding the right home within their budget.
What does this mean for you? If you’re a millennial thinking about buying a home, it’s important to understand what’s driving your peers into the housing market and what challenges they’re facing on the path to homeownership; that way, you know what to expect—and can set yourself up for success on your home search.